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How fair is it?

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#1
solartic

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Hi guys

I'm having some issue in relation to my work contract(first job/contract) and I would really appreciate some advice on the matter. Basically I'm still at university and was hired as a web developer for the most part the contract seemed fine. What I got from it was that basically I could not do any similar products or take away customer or employees for a period of 18 months after I leave. I must have been so excited I missed the section that said that I also have to turn over any idea that relates to work during the 18 months even if copyright or patented. Anyway I had a discussion and was told that basically pretty much all my right program is up to my employer so if for some odd reason he said I could not do any programming, and I did I could be sued. I don't really buy into that but I'm no layer so I won't say I cant be wrong. Anyway I think this is an unfair contract, based on the reading I've done and my gut feeling. I would just like some additional input on weather this is the type of strictness that I must expect in the working world. Most of it seem like the standard stuff but total restriction of trade is a big no no for me and, I don't plan to do any similar products but heck, I'd probably be told that that the creation of any web product is similar so, I'm not all that happy about that clause either.

#2
Ancient Dragon

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In the USA a contract can not stop you from getting employment, but it can limit your employment to non-competing companies. For example, if you signed a non-compete contract with Pepsi then afte you quit you will not be allowed to get a job at Coke for the time perios specified in the contract.

>>What I got from it was that basically I could not do any similar products or take away customer or employees for a period of 18 months after I leave
I think they may have legal problems with the first part (similar products) as long as you do not use any of the source code you wrote for the original project. The remainder of that clause about taking away customers/employers is most likely legit and enforcable.

If you are really concerned about that contract then you need to talk to an attorney who is skilled on contracts.
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#3
solartic

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I should be getting a responce from a layer soon, just wanted to see if this was a norm in the industry. Thanks a lot for the response.

#4
Roger

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In my experience, that language is standard in employment contracts. Most people, when they leave a company for something else that they've been working on outside of work will not tell the company about that. And the company will never really now about it unless you tell them.

Did you tell your company about something that you're working on?

Are they interested in that code?

Can they do anything (useful) with that code?

In my opinion, unless you wrote the next Facebook or Twitter, it wouldn't do much good for your company even if you handed over some code. You should really think hard about the "value" of the code involved to make sure it's even worth any litigation.
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#5
solartic

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@Roger: Well no I guess I don't have to worry too much about that right now. Well I would not fuss over a code unless it really had some significant value.

#6
Roger

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In this case, you should wait until your lawyer's response.

Edited by Roger, 24 August 2010 - 02:45 PM.

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#7
WingedPanther

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Generally, there is a no-compete clause (which may or may not be enforceable), a non-disclosure agreement, and you sign over the copyright of any code you develop for them to them.
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#8
solartic

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WingedPanther said:

and you sign over the copyright of any code you develop for them to them.
Well I can live with that but if the code is done on my time and don't compete with the business and the company still thinks that they should have control then thats where I have and issue. Well thanks for the inputs guess ill try and wait on that layers as roger said.

#9
Roger

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I can't quite see how your company would know what you work on outside of work? Do you use the company computer? On company time? If you have a computer at home, write some code, then quite the company, how would they know to come after your code??

Are you having this issue right now? Or are you over-analyzing your contract?
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#10
solartic

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Basically no they would not know if i am working on something outside of work, I just find it sad that I would probable have to keep my work hidden even if it dose not conflict with work. That is pretty much what i was told about my current contract which I am trying to get some information about, I seem too restrictive and I'm at a point where I considering leaving. This thread was pretty much to see if that is what i should expect elsewhere. I don't mind some level of restriction i don't mind but, I mean I was even told that I should not be even programming outside of work. I planning on having another discussion about it after I get a reply from a layer. I just hate the idea of having to hide and do thing especially simple thing that should not even be restricted like using mootools library for example because apparently we should not used anything we learn at work(I don't consider something like that a trade secret so I see no need why I should not be able to use that). wow thats a mouthful.

#11
Roger

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I see where you're coming from. My short, non-legal, answer would be - keep it to yourself and do not use any company resources. I believe most "mature" companies would have similar (but hard to enforce) clauses in their contract. More specifically, I would say that almost all companies that have been burnt by copyright problems will have this clause in their employment contract.
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#12
solartic

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Well thanks for the tips, I guess you just got to work with the flow as best as you can sometimes.